There's something appealing about buying a brand-new home. Nobody has lived in it before. Depending on the builder, you may get to choose your floor plan, finishes and upgrades. And you could be moving into a home with modern systems, new appliances and a builder warranty.
But buying new construction isn't quite like buying an existing home.
The builder has its own sales team, purchase contract, financing offers, construction schedule and warranty process. And some decisions you make early in the process can affect your options later.
If you're considering new construction in Frankfort, Mokena, New Lenox, Tinley Park, Orland Park or the surrounding southwest suburbs, here are some things I'd want you to understand before getting started.
1. Understand the Different Types of Home Builders
Not all new construction is created the same way. One of the first things to understand is what kind of builder you're dealing with and how much control you'll actually have over the finished home.
Production Builders
Large production builders such as D.R. Horton and Lennar typically construct homes using standardized floor plans, materials and construction processes.
In many communities, particularly those focused on inventory or move-in-ready homes, buyers have very limited opportunities to customize the property.
The builder may have already selected the floor plan, exterior design, cabinets, countertops, flooring and other finishes. You're essentially purchasing a home that's already been designed, whether it's completed or still under construction.
If you want to make changes later, those improvements may need to be completed at your own expense after you take ownership, subject to applicable restrictions.
Some production builders offer build-to-order homes with predetermined options or design packages. The amount of flexibility depends on the builder, community and construction stage.
Semi-Custom Builders
Semi-custom builders generally offer more flexibility.
You may start with one of the builder's existing floor plans and make changes to the layout, structural features, materials or finishes. Some allow significant modifications, while others limit buyers to a menu of approved options.
Builders such as O'Malley Builders and other regional companies may offer different levels of customization depending on the community and home being constructed.
The important thing is to ask exactly which changes are permitted and how they're priced.
Full Custom Builders
A full custom builder offers the greatest potential flexibility.
Instead of selecting a home from a predetermined collection of floor plans, you may work with an architect or designer to develop a home around your needs, property and budget.
That can include everything from the layout and exterior architecture to the materials, mechanical systems and interior finishes.
However, custom construction typically involves more decisions, a more complicated budgeting process and potentially longer design and construction timelines.
Keep in mind: These categories aren't rigid. A builder may offer production homes in one community and more customizable homes in another. Always ask what level of customization is actually available for the property you're considering.
2. Talk to Your Realtor Before Visiting a Builder
This is probably the first thing I'd tell someone who's thinking about buying new construction.
Before walking into a model home, scheduling a private tour or registering on a builder's website, talk to the real estate agent you intend to work with.
Many builders have their own registration and agent participation policies. Some require your agent to accompany you on your first visit or be identified when you initially register. Others have different requirements.
If you visit or register on your own first, you could complicate your agent's ability to represent you in that particular community under the builder's policies.
That doesn't mean every builder follows the same rules. It means you should find out what the rules are before giving the builder your information.
One other distinction: The salesperson working in the builder's model home generally represents the builder. They can be helpful and knowledgeable about the community, but their role is not the same as having someone representing your interests as the buyer.
Illinois requires written brokerage agreements when establishing a buyer representation relationship. Make sure you understand the services, duration and compensation terms before signing.
3. The Advertised Price May Not Be the Final Price
A builder might advertise a home starting at $425,000. That doesn't necessarily mean the home you want will cost $425,000.
Depending on the builder and community, the starting price may not include:
- Premium homesite or lot charges
- Structural options or floor-plan changes
- Upgraded cabinets, countertops and flooring
- Additional electrical, lighting or plumbing options
- Appliances, window treatments or other finishes
- Landscaping, fencing or other exterior improvements
Some builders include more in their base price than others. And with inventory-focused production builders, many of these selections may already be determined before you ever see the home.
That's why comparing two communities solely by their advertised starting prices can be misleading.
Ask for a written breakdown of the actual home price, included features, lot premium, selected upgrades and any additional charges.
4. Builder Incentives Aren't Always What They Seem
Builders frequently advertise mortgage rate promotions, closing-cost assistance, upgrade credits and other incentives.
Those offers can provide real value. But you need to understand how they work.
For example, a builder may advertise a lower mortgage rate through its preferred lender. That could involve a temporary rate buydown, a permanent buydown or an adjustable-rate mortgage.
Those are very different financing arrangements.
- Temporary rate buydown: Reduces the borrower's payment for a limited period before the payment increases to the amount based on the underlying loan terms.
- Adjustable-rate mortgage: May offer an initial fixed-rate period before the interest rate can change under the loan's terms.
- Permanent rate buydown: May involve paying discount points or using builder credits to reduce the mortgage interest rate.
- Closing-cost assistance: Helps cover certain transaction expenses, subject to lender and loan-program restrictions.
Before choosing a builder's preferred lender, compare the actual Loan Estimate against at least one competing lender. Look at the interest rate, APR, loan type, points, closing costs, cash needed at closing and how the payment could change.
Why Builders May Offer Incentives Instead of Cutting Prices
There's another reason to look carefully at builder incentives.
Builders may prefer offering mortgage rate buydowns, closing-cost credits or upgrades instead of reducing the advertised price of a home.
Why?
Because lowering the recorded sale price of one home can influence buyer expectations, future negotiations and comparable sales within the subdivision.
Offering an incentive may help the builder sell the property while maintaining higher published prices on its remaining inventory.
That isn't necessarily illegal or improper. It's a pricing strategy, and it can benefit both sides in the right circumstances.
But an incentive isn't automatically a better deal than a lower purchase price.
A lower purchase price can reduce the amount you're financing and may have longer-term benefits. A mortgage incentive might produce greater immediate savings, depending on the loan terms and how long you plan to own the home.
Ask your lender to compare both scenarios: the home at its advertised price with the incentive, and the home at a lower negotiated price without it.
The better option depends on the actual numbers, not the promotional headline.
5. Understand the Trade-Offs With Production Builders
Production builders operate differently from smaller custom home builders.
Companies building hundreds or thousands of homes benefit from standardized floor plans, repeatable construction processes and the ability to purchase materials in large quantities.
Those economies of scale can help control costs and allow homes to be built more efficiently.
But there are trade-offs buyers should understand.
Materials and Specifications
Production builders often select materials based on a combination of cost, availability, consistency and construction efficiency.
That doesn't automatically mean the materials are inferior. But it does mean buyers should understand exactly what's being installed rather than assuming everything will match the quality or appearance of the model home.
Request written specifications for flooring, cabinetry, countertops, windows, appliances, mechanical equipment and other important components.
Subcontractors and Quality Control
Large builders commonly rely on multiple subcontractors to complete different stages of construction.
That isn't unusual in residential construction. Smaller builders use subcontractors too.
But when a company is building a large number of homes simultaneously, construction quality can depend heavily on the individual crews, site supervisors and quality-control procedures.
A builder's national reputation doesn't necessarily tell you everything about the quality of work in a particular subdivision.
Construction Schedules
Production builders often work on established construction schedules designed to keep multiple homes progressing through different stages.
That can create efficiencies, but buyers should understand how the builder handles mistakes, unfinished work and issues identified during inspections.
Don't assume that something will automatically be corrected later simply because the builder says the home is still under construction.
Limited Changes After Construction Begins
With some production builders, buyers may not be able to change the floor plan, electrical layout, finishes or other features once construction begins.
In inventory-focused communities, those decisions may have been made before the home was even offered for sale.
If you're planning to add recessed lighting, change flooring, install different fixtures or make other improvements after closing, calculate those expenses before comparing the home with other options.
Warranty Service
Large builders may have established warranty departments and formal service procedures.
However, the quality of warranty service can vary by local division, community and the people responsible for addressing homeowner concerns.
Find out how warranty requests are submitted, how long responses typically take and who is responsible for coordinating repairs.
The bottom line: A production-built home isn't automatically a poor-quality home, and a custom-built home isn't automatically better. What matters is the actual construction, materials, supervision, warranty coverage and value you're receiving.
6. Research the Builder Before You Sign
Before purchasing a new construction home, spend some time researching the company that's actually going to build it.
Start with Google reviews, the Better Business Bureau, homeowner discussions and local news coverage.
With national builders such as D.R. Horton and Lennar, you'll generally find more information because they build a large number of homes across multiple markets.
But don't judge a builder solely by its overall rating.
People who have a bad experience may be more motivated to post a review than people whose purchase went smoothly. And a national builder's reviews may reflect experiences in markets hundreds of miles away from yours.
Instead, look for patterns:
- Are homeowners repeatedly reporting the same construction defects?
- Are there recurring complaints about unfinished work at closing?
- Do warranty requests appear to be handled promptly?
- Does the builder respond professionally and offer meaningful resolutions?
- Are complaints concentrated in a particular community or local division?
Also look at the builder's history in the specific subdivision you're considering. If homes have already been completed, ask existing homeowners about their experience with construction quality and warranty service.
You can also ask the local building department about its inspection and permit records, including whether there are unresolved code issues involving the property.
The number of complaints matters less without context. What matters is whether there's a recurring problem and how the builder handles it.
7. Know What's Included and What Can Be Substituted
When touring a model home, ask which materials, fixtures and finishes are actually included in the home you're purchasing.
Builders may use standardized product packages, and some contracts permit substitutions when certain materials or products become unavailable.
That doesn't automatically mean you're receiving inferior materials. But buyers should understand how substitutions are handled and what standard the builder must meet.
Request the written specifications for your particular home. Review the flooring, cabinetry, countertops, windows, appliances, mechanical equipment and other important features.
And remember that the model home may include options or features that aren't part of the home you're buying.
If certain products or features are important to you, make sure they're identified in the purchase documents rather than relying on a verbal assurance.
8. Have an Attorney Review the Builder's Contract
New construction contracts can be quite different from the purchase agreements commonly used for resale homes.
Builders typically use their own contracts, which may address construction delays, design changes, deposits, inspections, warranties and what happens if the home isn't completed when expected.
Don't assume you automatically have the same attorney-review or inspection protections you might expect in a resale transaction.
Before signing, have an Illinois real estate attorney review the agreement and explain:
- When deposits become nonrefundable
- What happens if financing falls through
- Whether the estimated completion date can change
- How upgrades and change orders are handled
- What inspection rights you have during construction
- What happens if construction defects or unfinished items are discovered
- Which warranties apply and what they exclude
- Whether the contract requires arbitration or limits certain legal remedies
Get important promises and negotiated terms in writing. A conversation with a salesperson isn't a substitute for what the signed contract actually says.
9. Yes, You Should Still Get a Home Inspection
One of the biggest misconceptions about new construction is that a new home doesn't need an inspection.
New homes can have construction defects, installation errors and unfinished work just like any other property.
Municipal building inspections are important, but they serve a different purpose than an independent inspection performed for the buyer.
Depending on the stage of construction and what the builder permits, you may be able to arrange:
- Pre-drywall inspection: An opportunity to examine accessible framing, mechanical systems and other components before walls are closed.
- Pre-closing inspection: A more complete inspection before you take possession.
- Warranty inspection: An inspection before a key workmanship warranty period expires, often near the end of the first year.
Not every builder allows every inspection at every stage. That's something to establish before signing the purchase agreement.
And don't confuse the builder's final walkthrough with an independent home inspection. The walkthrough is generally intended to identify incomplete work, cosmetic issues and items the builder needs to address.
If an inspector identifies a problem, document it and understand how the builder will respond before closing.
10. Understand the Builder's Warranty
A newly built home may come with several layers of warranty coverage, but the details vary by builder and warranty program.
Some warranties provide separate coverage periods for workmanship, mechanical systems and structural defects. Other builders use different terms or exclusions.
Ask for the actual warranty documents before purchasing, not just a brochure describing the highlights.
Pay particular attention to what is covered, what is excluded, how claims must be submitted, response timelines and whether certain disputes must go through arbitration or another dispute-resolution process.
Keep records of warranty requests, photos and communications. If you notice an issue after moving in, report it according to the warranty procedures rather than assuming it can wait.
And consider scheduling an independent inspection before an important warranty period expires.
11. Construction Timelines Can Change
If you're buying a home that hasn't been completed, the builder may give you an estimated delivery date.
That's not always a guaranteed closing date.
Weather, labor availability, materials, utility connections, inspections and other construction issues can affect the schedule.
That matters if you're selling your current home, ending a lease, arranging movers or locking a mortgage interest rate.
Ask what happens if the home isn't ready on time and whether the contract gives you any remedies if the delay becomes substantial.
If you're also selling a home, make sure the timing of both transactions is part of your planning from the beginning.
12. Look Beyond the Model Home
A model home is designed to show a builder's product in its best light. But you're not just buying the house. You're buying into a neighborhood.
Before committing, look at the surrounding development and ask:
- How many homes or phases are planned?
- How long could construction continue around your property?
- Are there homeowners association fees, restrictions or maintenance obligations?
- Who maintains private roads, common areas and stormwater facilities?
- Are parks, trails or other promised amenities included in the approved plans?
- What are the likely property tax obligations once the home is fully assessed?
That last question is especially important in Illinois. Property tax estimates on a vacant lot or partially completed home may not reflect what you'll pay once the finished home is assessed.
Also, an attractive rendering isn't necessarily a promise that every proposed amenity or neighboring development will be built exactly as shown.
Check the approved plans and ask which amenities are already constructed, which are required and which are still proposed.
13. The Builder's Asking Price Isn't the Only Thing to Negotiate
Builders may be reluctant to reduce their published home prices, particularly when they're trying to maintain pricing across a subdivision.
That doesn't mean there's never room to negotiate.
Depending on the builder, community, inventory and market conditions, potential negotiation points may include closing-cost credits, upgrades, lot premiums, financing assistance or pricing on completed inventory homes.
There is no guarantee a builder will agree to any particular concession. But it's worth evaluating the entire transaction rather than assuming the advertised price and promotional offer are your only options.
Be sure to compare any concessions with the financing terms and other conditions attached to them.
14. Compare the Total Cost of Ownership
Before making a final decision, look beyond the monthly principal and interest payment.
Consider the estimated property taxes, homeowners insurance, HOA assessments, utilities, maintenance responsibilities and any additional costs associated with the community.
A new home may have some advantages in energy efficiency and near-term maintenance, but that doesn't automatically make it the least expensive option.
Compare the complete cost of owning the property with other new-construction communities and resale homes in the same market.
And if you're considering a home that will require additional improvements after closing, include those expenses in your comparison.
Find New Construction Around the Southwest Suburbs
If you're still exploring your options, I've started putting together a running guide to new construction across Frankfort, Mokena, New Lenox, Tinley Park, Orland Park and nearby communities.
It includes communities currently selling homes as well as residential developments moving through the planning and construction process.
Explore the Southwest Suburbs New Construction Guide
Thinking About Buying New Construction?
Whether you're comparing builders, looking at available communities or trying to understand a purchase agreement, it helps to have someone looking at the transaction from the buyer's side.
I've been working in residential real estate in the southwest suburbs since 2004, and I can help you evaluate the options before you make a commitment.
Before visiting a model home or registering with a builder, let's talk about what you're looking for.
This guide provides general educational information. Builder policies, contracts, incentives and warranty coverage vary. Consult qualified legal, lending and inspection professionals regarding your specific transaction.
